ÚDARÁS NA Gaeltachta has brought court proceedings against a businessman aimed at securing repayment of development grants of more than €1.2 million paid to two companies which have ceased trading.
The proceedings by Údarás against Pearse Flynn, Kilmalcolm, Scotland, promoter of Teagmhail an Daingin Teo and Teagmhail Acla Teocere, were transferred to the Commercial Court list yesterday by Mr Justice Peter Kelly.
Údarás claims it paid €905,165 in employment and training grants to Teagmhail an Daingin Teo under an agreement with Mr Flynn, as promoter of the company, of July 2005. Grants of €330,578 were paid to Teagmhail Acla Teo under written agreements of November 2005 with Mr Flynn, it also claims.
Both companies carried on business as international call centres and financial service centres in the Gaeltacht areas of An Daingean/ Dingle and Acaill/Achill. The services provided included generating customer leads for a financial services company, Red2Black Finance UK Ltd, a company incorporated in Scotland.
Údarás said it believed Mr Flynn was the principal shareholder in Red2Black which carried on business in the areas of mortgages, secured loans, individual voluntary arrangements and trusts.
Both companies ceased trading at the end of February. Údarás claims it was consequently entitled to revoke, and had revoked, the grants paid to both companies within the previous five years.
On revocation of the grants, Mr Flynn, as promoter, was required to repay all sums paid, it is claimed. However, €1.235 million was still owing.